Saudi Arabia opens property market to foreign investors

In a significant policy change, Saudi Arabia has published the complete law permitting foreigners to own and profit from real estate within the Kingdom.

The law gives non-Saudi individuals, companies, and non-profit organizations the right to own property or get long-term usage rights like leases or usufruct in certain areas. These zones will be chosen by the Council of Ministers. Ownership will depend on the property type, its use, and location. However, Makkah and Madinah remain restricted. Only individual Muslim owners can buy property there under special conditions. Gulf Cooperation Council nationals can now also own property in these cities, ending the old ban.

Foreigners living legally in Saudi Arabia can buy one house for personal use, but not in the restricted areas. Companies with foreign partners, licensed investment funds, and special-purpose businesses can buy property across the Kingdom, even in the holy cities, if it serves operational or staff housing needs. Listed companies must follow Capital Market Authority rules. International organizations and embassies can also own property for offices or staff housing, but only with approval from the Ministry of Foreign Affairs and based on mutual agreements.

All foreign buyers must register with the national real estate registry before any deal. Ownership becomes official only after registration. A transfer fee of up to 5 percent will apply to these transactions. Strict rules will apply for violations. Fines can go up to 10 million riyals. In case of false information, authorities can order the property to be sold, and the money will go to the state. A special committee will handle such cases, and appeals must be filed within 60 days. This new law replaces the 2000 Royal Decree No. M/15. More detailed rules will be shared in the next six months.